The escrow instructions, and this policy statement, including any amendments thereto, will constitute the sole and entire agreement between American Escrow Company (AEC) and the parties thereto.

AEC reserves the right to refuse any contract for escrow which does not meet our specific requirements.

All amendments to the original escrow instructions must be made in writing, signed by all parties, notarized, delivered to and accepted by AEC.

AEC assumes no liability for the legal effectiveness of any escrowed documents and volunteers no opinion, nor makes any representation as to the title conveyed or received, rights of lien holders, or any other matter affecting the interests of the parties in and to the subject matter of escrow.

AEC will follow the fee schedule for any additional disbursement fees. This applies to payments, balloons and non-scheduled payments. AEC reserves the right to change this fee schedule from time to time.

All payoffs, balloons, annual payments and any amount over a single payment must be made in CERTIFIED or TITLE COMPANY FUNDS. In the event a non-certified check is used, AEC will not disburse until funds are available through the banking institution from which the check is drawn, and all such payments will be posted as of date of receipt.

Unless otherwise agreed to in writing by all parties, AEC shall compute interest daily on the unpaid balance to the date the payment is received and will commence interest as of the document date.

AEC shall be entitled to receive fees in accordance with its fee schedule, which is current as of the date the service is rendered. Unless otherwise agreed to in writing by the parties, AEC shall deduct its fees from monies received prior to any disbursements.

If any payment received by AEC in the form of a check or draft is dishonored for any reason by the drawee, AEC shall have the right to give written notice to the parties of its intent to delay further disbursements to ensure clearance of check or draft. After giving notice of aforesaid, AEC shall not be liable for late payment penalties, interest, default, forfeiture, attorney’s fees, costs or any other loss or damage to the parties whatever, resulting directly or indirectly from delay of disbursements in accordance with notice. There is a $50.00 or more service charge(s) on all returned checks. Reimbursement of NSF checks will be in certified funds. We will reserve the right to require the payor, at any time, to furnish us with certified funds for all subsequent payments until the end of the escrow period. If any payment received by AEC, in the form of a check or draft, is dishonored for any reason by drawee and AEC cannot recover funds from the maker, the recipient will be required to reimburse AEC the full amount of the dishonored check or draft plus escrow fees.

IRS regulations require AEC to collect Tax Identification Numbers (TINs) from payors and payees on Real Estate Contracts, Mortgages and other interest bearing instruments. Payor’s and Payee’s failure to provide AEC with correct names and TIN information will result in AEC charging payor or payee for each written request according to the current fee schedule. AEC may restrict customer service and/or withhold release of escrowed documents until correct name and TIN information has been collected.

If a contract requires AEC to impound a portion of a monthly payment for the payment of taxes, insurance, or homeowner association dues, AEC must have the annual tax bill, insurance premium notice, or invoice for payment. It is the responsibility of the parties to ensure AEC receives all tax notices, insurance premium notices, or invoices, at least thirty (30) days prior to their due dates. Failure to provide these notices in a timely manner and confirm receipt may result in penalties or policy cancellation for which AEC is not responsible.

AEC will have the right to resign as Escrow Agent by giving thirty (30) days’ notice to the parties involved of its intent to withdraw. The parties involved will thereupon jointly select a successor Escrow Agent and give AEC written notice of such selection. If, for any reason, the parties fail to jointly select a successor Escrow Agent, then AEC may select the successor Escrow Agent. AEC will surrender all of its documents and funds, deducting from them its charges and expenses, to the successor Escrow Agent, therefore relieving AEC of all further liability and responsibility.

AEC is not responsible for any late payment or penalties caused by insufficient funds, mailing delays, or late receipt of payments. Demands letters and payments are time sensitive. AEC will honor whichever is received first. If a past due date lands on a weekend or a holiday, the payor must arrive before the close of business the day before said weekend or holiday to avoid a late charge and/or demand fees.

Any payment that is short may be returned. It may be processed with a letter to the payor of shortage; if shortage continues after written notice, payments will be returned. This does not apply to Wrap Real Estate Contracts.

AEC reserves the right to assess additional fees on any account with excessive activity or special services not covered by AEC fee schedule AEC reserves the right to amend its stated policy and any such change will become effective as to all accounts, unless otherwise stated, upon the giving of written notice to the parties.

Automatic withdrawal is a service that allows a payor to set a day for automatic payments to be drawn each month from the payor’s account. An AEC Automatic Withdrawal form must be completed, signed and returned with a voided check to AEC ten (10) business days prior to the first draft date. Automatic withdrawal payments are ACH transactions that must comply with applicable law. If the payor’s selected payment date lands on a Saturday, the payment will be processed the Friday before. If the payor’s selected payment date lands on a Sunday or a federal holiday, the payment will be processed the following business day. Cancellation and confirmation of receipt of this service must be made in writing at least ten (10) business days prior to the next scheduled payment date.

Direct deposit is a service that allows a payee to receive disbursements via electronic bank deposit. An AEC Direct Deposit form must be completed, signed and returned with a voided check or direct deposit form from your banking institution to AEC ten (10) business days prior to the first deposit. Cancellation and confirmation of receipt of this service must be made in writing at least ten (10) business days prior to the next deposit. Direct Deposits are transactions that must comply with applicable law.

All funds received hereunder shall be deposited into an AEC trust account, which may be an interest-bearing account. All interest earned therefrom may be retained by AEC as and for additional consideration for account servicing.